logoBC
Yaoundé - 26 September 2021 -
Public management

Cameroon is highly exposed to Chinese loans, AfDB estimates

Cameroon is highly exposed to Chinese loans, AfDB estimates
  • Comments   -   Monday, 22 March 2021 15:01

(Business in Cameroon) - Currently, "China has 61.3% of Cameroon’s bilateral debt," according to figures published by the African Development Bank (AfDB) in its 2021 African Economic Outlook. The same source explains that the figure represents 27.4% of Cameroon’s overall debt, which was estimated to be XAF10,164 billion as of September 30, 2020, or 45.8% of GDP (according to the national sinking fund CAA).

With this heavy indebtedness towards the Middle Kingdom, Cameroon  "has the characteristics of a country at high risk of debt distress" and (like Djibouti, Angola, the Republic of Congo, Ethiopia, Kenya, and Zambia) it is highly exposed to Chinese loans, the pan African financial institution estimates.  

It explains that the country's heavy dependence on Chinese loans started in early 2010, with the launch (in 2012) of major structuring projects (hydroelectric dams, bridges, roads, the port of Kribi ...) funded by China, through state-owned bank Eximbank China notably.

In July 2019, to relieve Cameroon from such a heavy debt repayment burden, the Chinese bank restructured the debt. At the time, the Cameroonian Ministry of Economy informed that Eximbank China agreed to reschedule 70 percent of the amount (excluding interest) that Cameroon was to repay over the period from July 2019 to March 2022.

BRM

kribi-to-soon-host-two-plantain-production-and-fish-farming-clusters
In the framework of its far belt project in Kribi, the host town of a deep seaport, agroforestry cooperative Coop CA AIO is currently planning to create...
cameroon-pm-joseph-ngute-instructs-the-allocation-of-a-specific-percentage-of-public-construction-contracts-to-matgenie
Since September 22, 2021, employees of the National Civil Engineering Equipment Depot (MATGENIE) have been, once again, protesting to request the payment...
douala-bangui-ndjamena-corridor-cameroon-introduces-single-transit-permit-to-save-time-and-reduce-hassles
Cameroon recently introduced the single transit permit for trips along the Douala-Bangui and Douala-Ndjamena corridors. This digital permit issued by...
foreign-trade-togo-became-cameroon-s-leading-african-supplier-of-petroleum-products-in-2020-ins
In 2020, Togo became Cameroon’s leading African supplier and the 7th worldwide, according to figures published by the National Institute for Statistics...

Mags frontpage


Business in Cameroon n103: September 2021

Cameroon: The other cocoa land


The rise of private equity


Investir au Cameroun n113: septembre 2021

Le Cameroun, l’autre pays du cacao


L’émergence du private equity camerounais